MBS RECAP: More Intraday Volatility; More Big-Picture Immobility

Bonds continue grinding it out in an exceptionally horizontal sort of direction! If you saw the best and the worst of trading levels on Monday, you've more than covered the entire range of bond market movement this week. To wit: The more we zoom out, the less consequential the past few days of intraday volatility become. That said, they've been more interesting than they otherwise might be because rates are so close to their lowest levels of 2017. That adds to a sense of excitement about the next move (because narrow ranges like this don't last). If we put today's volatility under a microscope , we can see the NYSE open (9:30am) and a series of headlines from the NY Fed (10:30am) putting upward pressure on rates heading into the noon hour. Yields bounced, notably, at 2.367-…(read more)